Indian shares seen opening higher after five-week slide; HDFC Bank in focus

Indian shares are expected to open higher on Tuesday, with investors looking for bargains after the benchmark indices lost about 4.8% each over five consecutive weeks. GIFT Nifty futures were trading around 23,525.5 points, suggesting a positive start for the Nifty 50, which closed at 23,398.1 on Friday. Domestic markets were shut on Monday for a local holiday.

HDFC Bank, the country's largest private lender and a heavyweight on the Nifty, will be watched after it sent the names of two candidates to the Reserve Bank of India for the chief executive's post. The move formally begins the succession process for Sashidhar Jagdishan, who is due to retire later this year.

Any optimism could be tempered by global factors. Brent crude was trading near $107 a barrel in Asian hours, a negative for India, the world's third-largest oil importer. Prices remain elevated on worries that the Middle East conflict could widen, with Yemen's Iran-aligned Houthis launching fresh attacks on Saudi Arabia and Gulf Arab states postponing planned talks with Iran.

Rising oil has also stoked inflation concerns and strengthened expectations of a U.S. rate hike later this week. The benchmark 10-year Treasury yield touched 5% on Monday for the first time since October 2023. In India, retail inflation accelerated further in August as price pressures spread beyond food and transport, bolstering the case for a central bank rate hike next month.

Among stocks in focus, Solar Industries said its unit will acquire South Africa's Omnia Holdings in an all-cash deal worth about $1.36 billion, as the explosives and ammunition maker seeks to expand its global mining business. Coforge said DK Singh, chair of its nomination and remuneration committee, has resigned citing "differences and tension", days after Chairman Om Prakash Bhatt stepped down following an internal audit review. KEC International announced new orders worth 13.03 billion rupees.